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Super guarantee – annual employer compliance results

This data provides annual statistics for ATO compliance activities and employer actions to meet their SG obligations.

Last updated 5 November 2023

Overview

We have released our latest annual statistical results for employer obligations relating to superannuation guarantee (SG) compliance and obligations.

These results provide key statistics and analysis for SG employer obligations, including ATO compliance actions undertaken for the 2022-23 financial year.

You can download a printable version in portable document format: 2022-23 Super guarantee compliance snapshotThis link will download a file

Definitions

Definitions of terms we use when explaining our compliance activities and employer SG obligations.

  • Super guaranteeSuper guarantee (SG) is the minimum percentage amount of ordinary time earnings (OTE) you must pay to avoid the super guarantee charge.
  • Super guarantee charge – The super guarantee charge (SGC) applies when you don’t pay the minimum amount of SG for your eligible employees to the correct fund by the due date.
  • Part 7 penalties – You are liable for a Part 7 penalty if you lodge your SGC statement late or fail to provide a statement or information when requested during an audit.
  • Super guarantee gap – This estimates the difference between the amount of SG paid, and what would have been paid if every employer met their SG obligations.

Previous results

You can download the 2021-22 compliance snapshotThis link will download a file.

Highlights of the 2022–23 year

Highlights of the 2022–23 financial year include the following.

  • Employers are paying more than 94% of the SG they are required to, without intervention from us.
  • A total of $1,130 million in superannuation guarantee charge (SGC) liabilities was raised through SG voluntary disclosures and ATO compliance action.
    • This includes amounts from ATO compliance actions and employer disclosures of unpaid super.
    • This will differ from the ATO's 2022-23 annual report amount of $1,243 million due to adjustments for amendments, objections and interest.
  • The ATO distributed $683.8 million of super entitlements into the super funds of 485,000 employees. This includes SG amounts collected for liabilities raised arising from employee complaints, ATO initiated compliance activities and employer voluntary disclosures.
  • The ATO finalised approximately 14,000 SG cases, resulting in around $447 million SGC liabilities and $157 million in Part 7 penalties being raised.  
    • 12,600 of the cases were because of employee notifications raising $379 million in SGC liabilities.
    • 1,400 of the cases were because of other ATO initiated reviews raising $68 million in SGC liabilities.
  • We also helped approximately 134,000 employers via our proactive actions including reminders and prompts to check their obligations, raising $81 million in SGC liabilities.
  • The ATO raised super entitlements to around 216,000 employees.
  • Around 56,000 employers came forward to make a voluntary disclosure of unpaid super, resulting in around $445 million in SGC liabilities being raised.

Employers overview

Approximately 915,000 employers are reporting super obligations through Single Touch Payroll, employing approximately 14.3 million employees.

Employee notifications

The ATO received around 23,300 employee notifications of unpaid super. Not all employee notifications received require a case to be undertaken.

Some are resolved through other ATO actions including notifications where:

  • super entitlements have been met, or the employee withdraws their complaint
  • the ATO has already raised an assessment against the employer for late or unpaid superannuation
  • the employer has already lodged an SGC statement to correct their obligations, or
  • duplicate notifications received from employees that have been added to an existing case for an employer.
Table 1: Employee notifications

Employee notifications of unpaid super

2021-22

2022-23

Total received

19,600

23,300

Total cases completed

15,200

12,600

SGC raised

$495m

$379m

Part 7 penalties raised

$210m

$155m

Amount paid to funds

$129m

$84m

Employees who received super

Not available

175,500

ATO initiated cases

Table 2: ATO initiated cases

ATO initiated cases for unpaid super

2021-22

2022-23

Total cases completed

2,100

1,400

SGC raised

$55m

$68m

Part 7 penalties raised

$5m

$2m

Amount paid to funds

$28m

$17m

Employees who received super

Not available

40,500

Voluntary disclosures of unpaid super

Table 3: Voluntary disclosures of unpaid super

Voluntary disclosures of unpaid super

2021-22

2022-23

Number of employers who voluntarily advised of unpaid super

30,800

56,000

SGC raised

$360m

$445m

Amount paid to funds

$228m

$286m

Employees who received super distributions

Not available

521,300

Super guarantee charge debt

Table 4: Super guarantee charge debt

Super guarantee charge debt

2021-22

2022-23

SGC collectable debt

$1,867m

$2,024m

SGC debt subject to objection or appeal

$65m

$46m

SGC collectable debt which is part of payment plans

$229m

$168m

SGC debt under a payment plan

Not available

8%

Director penalty notices (DPNs) issued

Not available

3,660

Examples of super guarantee compliance

Proactive prompt to meet SG obligations

An employer in the hospitality industry failed to pay their employees' super contributions for the latest quarter. We sent them a nudge letter reminding them to check their super obligations and lodge a SGC statement.

The employer took action following the nudge and lodged a SGC statement and paid the SGC to us by the due date.

This still had costs for the employer:

  • The SGC is more than the super the employer would have otherwise paid.
  • Unlike super contributions paid on time, the SGC is not tax deductible.

If the employer had paid their super contributions on time, they would have paid a total of $18,000. However, they were now liable for $19,095 of SGC.

By paying their SGC by the due date, they avoided further penalties. Our nudge helped the employer get back on track, and they have now set up reminders of future super due dates.

Part 7 penalty imposed for non-compliance

An employer in the construction industry failed to pay their employees' super contributions of $32,500 and became liable for $34,147 of SGC.

The employer had a history of non-compliance with their obligations and did not engage with us or make attempts to pay their SGC on time. We imposed a Part 7 penalty at 200% of the SGC and the employer then contacted us to discuss their debt.

Following engagement by the employer and consideration of their circumstances, we partially remitted their Part 7 penalty to 75%. The employer was then liable to pay a total of $59,757. This is much more than they would have paid if they had met their super obligations on time.

We worked with the employer to set up a payment plan to meet their SGC debt repayments. They have since complied with their lodgment and payment obligations.



QC70892